PSY 302: SUBSTANCE ABUSE

Chapter 9:Drug Trafficking

The Terrorism Connection

Terrorist groups and organized crime (drug cartels) have similar requirements for moving people, money, material, weapons, etc. across bordersNarcoterrorismTerrorists acts carried out by groups that are directly or indirectly involved in cultivating, manufacturing, transporting, or distributing illegal drugsMutually beneficial for drug traffickers and terrorists

Narco-Terrorism3

Known terrorist organizations trafficking drugs fund operations, gain recruits, expertiseColombia

Revolutionary Armed Forces of Colombia (FARC)

United Self-Defense Groups of Colombia (AUC)

PeruAfghanistan, Pakistan - Taliban

The Terrorism Connection

4

Narco-statesAfghanistanPakistanBurmaColombiaPeru BoliviaMexico

The Terrorism Connection

5

Fine line between drug trafficking and terrorismTaliban insurgents in AfghanistanSoutheast Asia’s Golden Triangle

The Terrorism Connection

CompartmentalizationVarying levels within an organization with specific goals and responsibilities related to these goals

Compartmentalized Organization

The French Connection

International Drug TraffickingLong-time problem

Drug Trafficking into the US

Only about 15-20% of narcotics are seized

Why?

1. Enormous amount of entry points

a. Thousands of inlets and roads

2. All Caribbean Islands are less than

2,000 miles from Miami

a. most are less than 2,000 miles

from Washington DC

Colombia Drug Trade

The only country in the world where the three main plant-based drugs – cocaine, heroin, and marijuana – are grown in significant amounts

Colombia is the only South American country that has both the Pacific and Caribbean coastlines

Colombia Drug Trade

These illegal drugs are being shipped to foreign countries including the US, and sold there for big $$$Colombia is the world’s largest drug producing countries, and produces 90% of the worlds cocaineLarge, ruthless criminal groups that organize drug trafficking, and commit serious crimes including kidnapping and murder to anyone who gets in their wayNot only do these groups deal with government organizations, but they are also competing against rival groups in the country

Colombian Drug Trade

Colombia didn’t start supplying marijuana to excess until the late 1960’s

The origin of the marijuana boom can be traced to a search by US consumers for a new supply source of marijuana

The new Colombian drug lords soon took over the producing and distributing of the marijuana that was produced in Colombia

During the 1970's the Colombian Drug Lords began focusing their attention on supplying a vast amount of cocaine

In the late 1980's when law enforcement began to crack down on the transporting of coca base to Colombia, the Colombians began planting and growing there own coca plants

Cocaine can be transported much more easily and has a much higher profit than does marijuana

Marijuana Cocaine

Colombia Drug Trade

Columbia-based cocaine trafficking groups in the United States operate through compartmentalized structureCell: Compartmentalization involves cells with about ten members, each operating independently; operates within a geographic area, the head of each cell reports directly to a controllerController: Responsible for overall operations of the several cells within a regionCentral Command: oversees and coordinates operations through the controllers

Heroin Trafficking in Colombia

By 1999, Colombia had become major heroin wholesalersGave free sample of their high purity heroin to their cocaine buyersStrategy workedThe high purity heroin permits it to be prepared for smoking, ridding the product of the dirty needle (high risk for HIV+) reputation

Mexico Drug Trade

Mexican drug trafficking organizations control most of US drug marketVaried transportation routesAdvanced communicationsStrong affiliations with US gangs

Mexico Drug Trade

60,000 suspicious transactions in a 12-month period… Only aproximately 300 of these transactions go through litigationBanking controls are laxInefficient legal system due to the consequential life threatening fearDrug cartels are glamorized

Mexico Drug Trade

The Two MexicosWar on drugs

Mexican government with aid from USWar for control of drugs

Corrupt police and military fight for their share of the drug business

Bowden (2009)

Mexico Prison Break: 53 Walk Out While Guards Do Nothing. Click on picture

Mexico Drug Trade

Now 45,000 troops involved in addition to state and federal police forces

2008: plans announced to double size of Federal Police purging local police forces of corrupt officers massive police recruiting and training effort

Mexico Drug Trade

Drug Cartel militarization and the Mexican government’s military response have resulted in fierce gun battlesGunmen have refused to surrender and have ambushed soldiers and police officersContinued corruption of local police departments with honest police assassinated

Mexican-Colombian Deal

In early 1990s, Mexicans struck a deal with Colombians whose cocaine they were moving from Mexico into USFor every 2 kilograms of smuggled Colombian cocaine, Mexicans could keep 1 kilogram as paymentAided by new legislationLed to structural changes: Compartmentalization

Mexico: Methamphetamine

Latecomers to the trade, Mexican drug organizations became dominant in the manufacture and distribution of methamphetamineProfits substantial – ten-fold return on investmentMexican restrictions on ephedrine and pseudo-ephedrine resulted in decrease production and resultant decrease in drug trade to USLed to relocation of production in US

Mexico: Marijuana

As opposed to instability of US heroin and cocaine markets, marijuana continues to be active drug tradeVery profitableOften just dumped over the border Laws lessened smuggling but simply relocated cartel harvest to US sideResult has been pollution issues, poisoning of animals, etc.

Economy Drug Trade Analyze Colombia Economy

Unemployment rate:14.2%

Population below poverty line: 55%

Drug ProblemNew productions and imports of

marijuana

Cocaine being produced in Colombia

Drug smugglers supplying the world with massive amounts of

drugs

Mexican EconomyUnemployment: 3.7%

Population below poverty line:40%

Drug Problemgangland killings have

reached 5,376

117 percent increase of deaths have occurred in the

last year

Golden Triangle

The Golden Triangle of Southeast Asia encompasses approximately 150,000 square miles of forested highlands, including the western fringe of Laos, the four northern provinces of Thailand, and the northeastern parts of MyanmarWeak, corrupt governmentsDozens of armed ethnic guerrilla groupsIntense heroin and methamphetamine traffickingGolden Triangle heroin also feeds a sizable addict population in ChinaHuman traffickers “mules”

Golden Crescent

The Golden Crescent of Southwest Asia includes Afghanistan, Pakistan, and parts of IranOut of control opium growing leading to Afghanistan as world’s biggest producer of opiumTraffickers stronger than law enforcementGrowing domestic market for heroin in PakistanRapidly growing, and poverty-stricken populationEasy access to heroin is leading to expanding addict population and drug organizationsAntidrug efforts have been futile

Domestic Drug Business

Goldstein (1985)Norm violations result in violenceThree types related to drug business1.Pharmacological Violence: Violence induced by the pharmacological properties of the drug itself2.Economic-Compulsive Violence: Violence associated with efforts to obtain money to finance the high cost of illicit drugs3.Systemic Violence: Violence associated with traditionally aggressive patterns of interaction within the system of drug distribution and use

Systemic Violence

Penalties for street level norm violationsDeath is usual punishment for a norm violationTeenagers may be given lesser punishments

Gun shot wounds Pithing

Open-Air MarketsRepresent the lowest level of the drug distribution networkFew barriers to access, and anyone who looks like a plausible buyer will be able to purchase drugsOpen-air drug markets operate in geographically well-defined areas at identifiable times so buyers and sellers can locate one another with ease. A variety of drugs may be sold, most commonly to include: heroin, crack, cocaine, and marijuana

Street-Level Drug Business

Street-Level Drug Business

Open-Air Markets Enforcement IssuesDisplacement

This often occurs after arrests are made; many new drug dealers ready to replace the one arrested

Clustering Some believe its better to have competition;

leads to larger customer base; affords protection from law enforcement that isolated dealing does not

Domestic Drug Business

Rural areas present their own issuesProduction of methamphetamine prevalent in rural AmericaMeth labs often located in rural areas and usually set up and run by local residents similar to the operation of small-scale production and distribution of moonshine whiskey during the Prohibition EraNazi method: Outlaw chemists have been stealing anhydrous ammonia, normally used for fertilizer, for converting it into methamphetamine

Domestic Drug Business

LSD made by about a dozen chemistsJust these few chemists are believed to be manufacturing nearly all of the LSD available in the United StatesSome have probably been operating since the 1960sCooks and traffickers work together to distribute LSD throughout the US

Domestic Drug Business

Money LaunderingThe process of concealing the source of money obtained by illicit meansThree methods

Placement Layering Integration

Money Laundering

PlacementThe initial movement of criminally derived currency or other proceeds of crime, to initially change it’s form or location to places beyond the reach of law enforcementLayeringThe process of separating the proceeds of criminal activity from their originDisguising the origin through the movement of funds trough accounts and financial institutions

Money Laundering

IntegrationThe process of using an apparent legitimate transaction to disguise the illicit proceeds allowing the laundering of funds to be disbursed back to the criminal

Suspicious signsBanksWire transfersObtaining loansLoans given to offshore companiesLavish lifestylesPurchase of stocks (securities) or insurance

Money Laundering

Credits

Some slides prepared with the help of the following websites: stephen.bruestle.net/sites/SDB/.../economics%20of%20drugs.ppt

pmaswork.wikispaces.com/file/view/drug+war+in+america.ppt

mendham.wmrhsd.org/FACULTY_FILES/npanfile/.../LADrugTrade.pptCached

www.personal.psu.edu/djm8/456SPRMexicanDrug.ppt www.calstatela.edu/faculty/rcastil/ECON465/Drugs.ppt www.fintraca.gov.af/.../ppt/.../Examination%20Techniques%20part%...